Minimum wage in Las Cruces will increase to $13.47 per hour on January 1, 2027, giving workers covered by the city rate a 46-cent hourly increase from the 2026 level.
The city’s tipped wage will also rise, reaching $5.39 per hour in 2027 compared with $5.20 per hour in 2026.
The City of Las Cruces announced the scheduled increase on October 7, 2026, in a notice based on the Las Cruces Municipal Code.
Table of Contents
Las Cruces minimum wage rates for 2027
The 2027 rates apply beginning Thursday, January 1, 2027.
| Year | Minimum wage | Tipped wage |
|---|---|---|
| 2024 | $12.36 | $4.95 |
| 2025 | $12.65 | $5.06 |
| 2026 | $13.01 | $5.20 |
| 2027 | $13.47 | $5.39 |
The regular minimum wage will increase by approximately 3.5 percent from 2026 to 2027.
The tipped wage will increase by 19 cents per hour, or approximately 3.7 percent.
For an employee paid the regular minimum wage who works 40 hours per week for 52 weeks, the 2027 rate would equal $28,017.60 in gross annual pay before taxes and other deductions.
Why the Las Cruces rate is higher than the state rate
New Mexico’s statewide rate remains $12 per hour under the information published by the New Mexico Department of Workforce Solutions.
Las Cruces has its own local wage requirements, and the city says employers must follow the higher applicable rate.
The city adopted Ordinance 2726 in 2014 to establish a local wage floor, a tipped wage and annual adjustments for Las Cruces.
Beginning in 2020, the city’s ordinance tied future adjustments to the Consumer Price Index, commonly called the CPI.
Each year, the city calculates the local rates and compares them with the rates set under New Mexico law.
Las Cruces adopts the higher rate when the city and state amounts differ.
That comparison produced a higher local rate for 2027 even though the statewide rate remains $12 per hour.
How the rate has changed in recent years
The local rate has increased each year from $12.36 in 2024 to the announced $13.47 rate for 2027.
The local rate was $12.65 in 2025 and $13.01 in 2026.
The tipped wage has followed a similar upward path, rising from $4.95 in 2024 to $5.06 in 2025 and $5.20 in 2026.
The 2027 schedule continues the city’s CPI-linked adjustment process rather than creating a new wage policy.
What the 2027 increase means for workers
Workers whose pay is tied to the Las Cruces minimum wage should see the higher rate reflected in pay earned on or after January 1, 2027.
The increase adds 46 cents for each hour worked at the regular rate.
At 40 hours per week, that difference equals $18.40 in additional gross weekly pay before taxes and other deductions.
Over 52 weeks, the same schedule would equal $956.80 in additional gross annual pay if the worker remains employed for the full year and works the same hours.
Actual earnings can differ based on schedules, overtime, unpaid time, exemptions and whether an employer pays more than the required minimum.
Tipped employees should review their pay statements and workplace notices to confirm that the applicable cash wage and tip-related requirements are being followed.
New Mexico law requires tips and the employer’s cash wage to meet the applicable minimum wage, subject to the requirements of state law and any higher local rate.
What employers should do before January 1
Las Cruces employers should review payroll systems, timekeeping records and employee pay rates before the new schedule takes effect.
Businesses that pay the current $13.01 local rate will need to update that rate to $13.47 for covered work beginning in 2027.
Employers using the local tipped wage should update the applicable rate from $5.20 to $5.39 per hour.
The city has published 2027 wage posters in English and Spanish.
Employers should display the required notice where workers can easily see it and should confirm whether other state or federal requirements apply to their workforce.
Businesses operating in more than one New Mexico city should also check the local rules in each location because municipal wage rates can differ.
What the increase does not change
The Las Cruces announcement is a scheduled local wage adjustment, not a change to the statewide rate.
It also does not mean every worker in the city will automatically receive exactly $13.47 per hour.
Employees who already earn more than the legal minimum may not receive an additional increase unless their employer separately changes their pay.
Certain jobs or employers may be subject to exemptions or special rules under applicable wage laws.
The city notice also does not announce a change to overtime rules, payroll taxes or employee benefits.
Where workers can check wage information
Workers can compare their pay with the 2027 Las Cruces rate after the effective date and keep copies of pay statements and work records.
Employees who believe they were paid less than the required rate can contact the New Mexico Department of Workforce Solutions for information about wage rights and possible claims.
The state agency says it enforces New Mexico wage laws and recognizes that some cities, including Las Cruces, have higher local wage rates.
Employers and workers should use the city’s official 2027 poster and the state agency’s wage information when questions arise about the applicable rate.
Key dates for the Las Cruces wage increase
- October 7, 2026: The City of Las Cruces announced the 2027 wage schedule.
- January 1, 2027: The $13.47 regular minimum wage and $5.39 tipped wage take effect.
- After the effective date: Workers should review pay records, while employers should use updated rates and workplace posters.
Frequently Asked Questions
What will the Las Cruces minimum wage be in 2027?
The Las Cruces minimum wage will be $13.47 per hour beginning January 1, 2027.
What will the Las Cruces tipped wage be in 2027?
The tipped wage in Las Cruces will increase to $5.39 per hour on January 1, 2027.
Why is the Las Cruces minimum wage higher than New Mexico’s state rate?
Las Cruces has a local ordinance that links wage adjustments to the Consumer Price Index and requires the higher of the city or state rate to be used.
Does the 2027 increase change New Mexico’s statewide minimum wage?
No. The city’s notice says New Mexico’s statewide minimum wage remains $12 per hour, while Las Cruces will apply its higher local rate.
Fact-Checked: The 2027 Las Cruces rates and effective date were checked against the City of Las Cruces notice, and the statewide rate was checked against the New Mexico Department of Workforce Solutions.
Disclaimer: This article is for general information and is not legal or payroll advice. Employers and workers should confirm the rules that apply to their specific situation.
New Minimum Wage In Canada and 5 Provinces, Effective April 1
